's debtholders to bail out the firm as bankruptcy looms. Because of this implicit guarantee, firm shareholders have an incentive to …

Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …

All of asset-pricing theory currently stems from one key assumption: price equals expected discounted payoff. And much …

market liquidity and trading of other market participants. IDT contribute 10% to volume while losing 3.2 bp (73% of the half …-spread) on average on trades with others, including proprietary day traders (PDT), the primary intraday-liquidity providers, and …

' provision of liquidity insurance in the form of credit lines, their significance in managing corporate liquidity, and the …

liquidation tied to the par value of the bank's capital. Our tests show that optimal contracting theory can provide an explanation …

We study the effect of real asset liquidity on a firm's cost of capital. We find an aggregate asset-liquidity discount … in firms' cost of capital that is strongly counter-cyclical. At the firm-level we find that asset liquidity affects firms … periods of high asset liquidity have lower cost of capital. This effect is stronger when the asset liquidity is provided by …

make sure that all debts within the system are settled. The main result is that these liquidity needs are larger when these …

liquidity to the agent …

Is greater trading liquidity good or bad for corporate governance? We address this question both theoretically and … information concerns her own plans for taking an active role in governance. We show that an increase in the liquidity of the firm …'s stock increases the likelihood of the large investor 'taking the Wall Street walk.' Thus, higher liquidity is harmful for …